{"id":2758,"date":"2017-03-27T10:00:40","date_gmt":"2017-03-27T10:00:40","guid":{"rendered":"http:\/\/www.tellermate.com\/?p=3329"},"modified":"2018-05-31T09:45:15","modified_gmt":"2018-05-31T09:45:15","slug":"utilizing-fast-casual-restaurant-technology-tackle-rising-costs","status":"publish","type":"post","link":"https:\/\/www.tellermate.com\/ca-en\/news-and-resources\/utilizing-fast-casual-restaurant-technology-tackle-rising-costs\/","title":{"rendered":"Utilizing restaurant technology to tackle rising costs"},"content":{"rendered":"

\"DaveTechnology is now a fundamental part of everyday life. From endless information to automation, we see the benefits everywhere we look. But, not only has it enriched our personal lives, it\u2019s also changed the way that businesses operate. Quick-Service- Restaurants and Fast Casual Restaurants in particular now rely heavily on restaurant technology to streamline operations, automate manual tasks and offset rising labor costs.<\/p>\n

Challenging times<\/h3>\n

Restaurants have been facing rising costs along with most businesses. But according to a recent Consumer Price Index, the cost of dining out has been growing five times faster than inflation<\/a>. A sign that operators are already passing rising costs onto consumers.<\/p>\n

Of all the rising costs facing restaurant operators in 2017, few are quite as potent as wage inflation<\/a>. Because, for an industry where labor costs account for about 30 percent of total revenue, any increase (no matter how small) has a significant impact on the bottom line.<\/p>\n

Shake Shack outgoing CFO Jeff Uttz said recently that labor costs \u201cwill be a big challenge for restaurant companies<\/a>\u201d for the foreseeable future. Widespread increases to minimum wage across the US and the introduction of the National Living Wage in the UK have hit the restaurant industry hard.<\/p>\n

\"RestaurantOver 4.3 million low-wage workers<\/a> across the US have already benefited from minimum wage increases this year. This large number translates to a rapidly increasing operating cost for restaurants.<\/p>\n

Add to this the rising cost of commodities, increased competition and more cautious consumer spending habits and it\u2019s easy to see why QSRs and Fast Casual restaurants alike are continually looking for new ways to \u201cbeef up\u201d their paper-thin margins.<\/p>\n

Restaurant Technology<\/h3>\n

For many of these companies, the answer of course lies in restaurant technology.<\/p>\n

Restaurant Chain Chili\u2019s for example, installed more than 50,000 tablets across their locations to help their employees work more efficiently. Fast Casual Chipotle, have implemented online ordering<\/a> via mobile apps to reduce long lines instore. While McDonald\u2019s have started to rollout automated ordering kiosks<\/a> to replace manned checkouts.<\/p>\n

In theory, these innovations allow restaurants to expedite processes in the front of house by automating manual tasks. In practice though, it often leads to a reliance on self-service technology as a tool for offsetting higher labor costs. This places a higher burden on customers and in many instances can actually damage the customer experience.<\/p>\n

Instead, by automating back-office tasks restaurants can drive efficiency whilst protecting service levels. In the age of the customer experience this can be a big competitive advantage.<\/p>\n

Driving efficiency with cash management technology<\/h3>\n

Despite the rise of alternative payment methods, when consumers eat out it\u2019s often more convenient to pay in cash. This means that restaurants are often cash heavy environments.<\/p>\n

Managing this cash takes time \u2013 a lot of it. Between reconciling cash drawers, preparing banking deposits and managing the cash in the safe, a large amount of employees\u2019 time is spent in the back office managing the business\u2019s cash.<\/p>\n

That\u2019s why a large number of restaurants are now implementing cash management technology in their locations. Fast Casual chain Panda Express recently rolled out Tellermate Cash Counters<\/a> across their restaurants to reduce the time spent reconciling cash drawers and to reduce the labor costs associated with this. Panda Express\u2019s Director of Audit said that \u201cThe labor and time savings for our cashiers and managers has resulted in direct cost savings for our company\u201d.<\/p>\n

In the front of house, Intelligent Cash Drawers<\/a> (often called Smart Cash Drawers) can also be implemented to expedite shift changes, monitor change levels and alert cashiers if the incorrect change has been given to reduce the time customers wait in line.<\/p>\n

Not only do restaurants save time when they implement cash management technology, but they also reduce cash loss \u2013 and that makes a big difference to the bottom line.<\/p>\n

From Intelligent Cash Drawers to cash counters, to smart safes; restaurants that use cash management technology save time and money whilst simultaneously enabling employees to spend more time with customers. This makes cash management technology the obvious addition for restaurants looking to offset rising operational costs and enhance the customer experience.<\/p>\n

Want to know how cash management technology can drive efficiencies and reduce cash loss in your restaurant? Download Panda Express Case study to learn more<\/a>.<\/h3>\n","protected":false},"excerpt":{"rendered":"

Technology is now a fundamental part of everyday life. 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